Several companies were making headlines in midday trading. Abercrombie & Fitch saw its shares jump nearly 8% after JPMorgan added it to its positive catalyst watch list. Analysts raised the stock’s price target and third-quarter earnings estimate, citing momentum in its brands, including Hollister, during the back-to-school shopping season. On the other hand, Spirit Airlines plunged 26% following reports that it is potentially filing for bankruptcy after a failed merger with JetBlue. JetBlue shares, however, jumped more than 15% on the news.
Rivian Automotive, an electric vehicle maker, slipped nearly 5% after cutting its annual production guidance for 2024 to between 47,000 to 49,000 vehicles, citing a supply shortage. This was a decrease from the company’s previous forecast of 57,000 vehicles. Vistra Corp, a utility company, rose about 5% as it continues to build on its recent rally. The stock has gained in 18 of the past 19 trading sessions, overtaking Nvidia as the S & P 500’s top gainer this year. Summit Therapeutics, a biopharmaceutical company, added 2% after the Food and Drug Administration granted its cancer drug, ivonescimab, a fast-track designation for patient treatment.
On the international front, Ubisoft Entertainment, a French video game publisher, saw its shares surge more than 30% after reports that Tencent and the Guillemot family, both minority shareholders, are considering a potential buyout of the company. SilverCrest Metals, a precious metals producer, announced that Coeur Mining is acquiring SilverCrest at an implied stock value of around $1.7 billion, causing its shares to pop nearly 12%. However, Coeur Mining’s shares fell 7% in response to the news. Another company that saw a significant drop in its shares was Zim Integrated Shipping Services, which plunged more than 13% following reports that a tentative agreement had been reached to end a port strike, affecting U.S. dockworkers and the United States Maritime Alliance. This news also led to losses for other international shipping stocks, including Danish shipping giant Maersk at 5%.
In other news, CVS Health saw its shares add 3.3% after reports that the company’s board is engaging with advisors to start a strategic review of its business. CVS is considering splitting up its retail pharmacy and insurance units, which would be a significant departure from its longtime strategy. The company is dealing with higher-than-expected medical costs in its insurance unit among other issues, prompting the potential strategic review. Overall, these companies are experiencing notable movements in their stock prices due to various internal and external factors, impacting their performance in midday trading.
